Mexico Automakers Slash US Shipments After 25% Tariff

More than half of the automotive manufacturers operating in Mexico reduced exports to the United States after Washington imposed a 25% tariff on imported vehicles in April. Enacted under President Donald Trump on national security grounds,  the measure prompted companies including Mazda, KIA, Audi, Ford, Honda, Toyota, and General Motors to adjust their export strategies.

According to the National Institute of Statistics and Geography (INEGI), brands with recently established plants in Mexico—such as Mazda, KIA and Audi—saw the steepest declines in US-bound shipments between April and June. Mazda cut exports to the US by 53.4%, sending 16,136 vehicles and reducing the US share of its Mexican exports from 72.2% in 2024 to 54.9% in 2025. KIA lowered shipments by 12.6% to 46,829 units, with the US share falling from 80.7% to 66.4%. Audi’s exports dropped 37.4% to 16,054 units, representing 29.1% of its total exports, down from 41.1% in the same period last year.

While the tariff officially stood at 25%, Mexican authorities confirmed a partial adjustment under USMCA rules. On May 20, Minister of Economy Marcelo Ebrard stated: “The average tariff applied to vehicles assembled in Mexico is 15% if they comply with the rules of origin established in the USMCA.” This provision recognizes US-sourced components in vehicles assembled in Mexico.

Automakers with a longer presence in Mexico also reported declines in US export ratios. Ford’s shipments to the United States fell from 93% to 84.9% of its total exports, Honda-Acura from 89.3% to 86.9%, Toyota from 93% to 91%, and General Motors from 85% to 85.4%, signaling a broader retrenchment from the US market.

The tariff coincides with stricter USMCA rules of origin, raising the required Regional Value Content (RVC) for vehicles from 62.5% under NAFTA to 75%. Newer plants, including Audi, Mazda, BMW, Honda-Acura, and Mercedes-Benz, face greater challenges meeting these requirements, and data indicate they have been disproportionately affected.

Despite these shifts, the United States remains Mexico’s main automotive export market. From April through July, 905,798 vehicles were exported to the US, a 0.8% year-on-year increase, though the US share of Mexico’s total automotive exports declined slightly from 77.7% to 76.8%.

Alternative markets showed strong growth. Canadian imports rose 34.2% to 146,262 units, Argentina’s by 159% to 7,227 units, Saudi Arabia’s by 55.5% to 5,775, Japan’s by 38.9% to 5,412, and Australia’s by 45.9% to 4,574. These gains partially offset the decline in US-bound shipments and illustrate a continuing diversification of Mexico’s automotive trade flows.